engaging connected consumers

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@phil_hendrix | www.immr.org

Engaging Connected Consumers –

Strategies for Brands and Retailers

November 2013

Dr. Phil Hendrix

Director, immr and Gigaom Research analyst

www.immr.org

1 (770) 61201488

phil.hendrix@immr.org

@phil_hendrix

When posting excerpts or citing, please

reference “Engaging Connected Consumers,”

prepared by Dr. Phil Hendrix, immr and

link to www.immr.org

� Research ConsultantResearch�based Strategy forVery New Products and Markets

� Advisor – Startups• Product�Market Fit• Value Proposition• Growth strategy

� Catalyst• Innovation• Strategy

� Analyst• Emerging Technologies• Mobile/M�Commerce• Location, Context

Previously

About me

Mercer Diamond Cluster

� Overview, Cases

� 7 Frameworks

� Emerging Applications, Implications

� 10 Strategies for Brands and Retailers

Topics for Discussion

� CX (Customer Experience) � 8 Layers of Location

� Frictions0Should0Wants � SoLoMo

� Digital Signals � M4M (Metaphors for Mobile)

� PEER (Personalize – Enable – Enhance – Reward)

Related ReportsEngaging Connected

Consumers SeriesMobile Shopping

Series

Why is this Important?

@phil_hendrix | www.immr.org 6

Mobile Driving New Behaviors

Mobile Capabilities

9 in 10 Smartphone Owners

have their smartphone with

them “most of the time” or

“always”Source: Edison Research

Cumulative # of Downloads – Apple App Store

Case #1 – Coke Happiness Machine

Brands

Connecting in

New Ways

Case #1 – Coke Happiness Machine

“We used free stuff to

surprise people but what

we gave away was [a

dose of] happiness and a

smile.”

Case #2 – Connecting Digitally

For Discussion:

• What’s in it for the

consumer?

• Destination(s)/

Applications?

• Value to the brand?

• Value to the

establishment?

Case #3. Social0Geo Targeting

Birds of a Feather

do Flock together

• Follow/fans

• Tweets

• Check0ins

CTR �� 7xFoo Fighters

Case #4 – “Good Push”

Case #5 – “Mobile Concierge”

Consumer Uses Description

Consumer Generated

Content� Social media make it easy for individuals to “produce” and publish their own

content. enormously popular activity.

Social Media� Individuals spending more of their time on social media, shifting away from the

rest*of*the*web.

Sentiment� Consumers are expressing views on a wide range of topics, including products,

brands and their experiences

Discovery� Social media is making it easier for individuals to discover and “follow” topics of

interest, including new products, artists, etc.

Influencers� SNM makes it easier for individuals to discover others with similar interests,

including experts or simply “persons in the know”

Wish lists � Individuals can post and share products they’re interested in

Sharing purchases � Individuals are “announcing” plans, purchases they make

Coordinating � Individuals are using social media to plan, decide what to do

Company Uses Description

Targeting � Using social media content, volume to target campaigns

Influencer Analysis � Cos are identifying influencers, using to “seed” campaigns

Sentiment Analysis � Companies are monitoring how they are being discussed

Service Recovery � Detect problems customers are experiencing, respond

Market Research � Mining social data to identify ideas, opportunities for new products

Social Networks/Social Media Use Cases

Transparency in Real0time

Mobile

Engagement

“The Remote for Our Lives”

Other Examples

Business and Consumers “Engaging”

Wroblewski’s Theorem

“Anything that can be connected to the Internet, will be.”

Philips Hue Bulbs

Luke Wroblewski

Nest Learning Thermostat

7 Frameworks� CX (Customer Experience)

� Frictions0Shoulds0Wants

� Digital Signals

� 8 Layers of Location

� SoLoMo

� Metaphors for Mobile

� PEER (Personalize – Enable – Enhance – Reward)

Customer

Experience

Discover Choose

Buy Use

Customer Experience > Path0to0Purchase

Key Moments of Truth for Customers

Stops Along the Consumer Journey

Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr

Can Mobile Save Shopping?

Source: If Shopping is Broken, Can Mobile Fix It? Dr. Phil Hendrix, immr

Customer

Motivations

What Motivates Consumers

Minimizing

Friction

inty Co

Enabling

Shoulds

Maximizing

Avoid, minimize,

or eliminate

“Satisfice” “Maximize”

“Good for You”

(Resolutions)

PEERSM

From the 4 P’s to PEER

†Securely, with full transparency

Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr

Learn† &Adapt

Remove Frictions

Surprise/Delight

Reinforce

Examples of Mobile PEERSM

Strategies

Personalize

Leverage data about consumers and their

context to increase the relevance,

timeliness and value of communications,

offers and customer experiences

Allows airports to tailor info

for travelers based on

profile, destination

Enable

Help customers complete tasks and

accomplish their goals by minimizing the

risk, time, and effort as they shop,

compare, purchase and use your products Mini owners can detect

other owners, share tips

Enhance

Surprise and delight customers by

anticipating and helping them fulfill

functional requirements, emotional needs

and aspirations

Guests can manage

experience (FastPasses,

reservations, rides, etc.)

Reward

Using feedback, encouragement, rewards

and social influence, reinforce customers

as they engage in behaviors that are

mutually beneficial

Allows hotels to

personalize rewards,

experiences based on

guest’s social profile

(Metaphors for Mobile)

Beyond the Remote – Metaphors for Mobile

Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix

8 Layers

Location

Corollary – “Everything’s “Everything’s “Everything’s “Everything’s a a a a Pixel”Pixel”Pixel”Pixel”

8 Layers of Location

Evolving toward Micro0Locations

Digital

Signals

Consumers’ Digital Signals

LocationLocation SocialSocial HistoryHistory

Source: Tuning into Consumers’ Digital Signals, Dr. Phil Hendrix, immr

Elements

SoLoMo

The Elements of SoLoMo

MobileMobile LocationLocation SocialSocial

Era of Big Data

Capturing, Sharing Images

Which siteOOreached 10m U.S. monthly unique

visitors faster than any independent

site in history?

O is generating more referral traffic to

websites than YouTube, Google+, and

LinkedIn combined?

Social Media Stats – July 2013

Source: http://growingsocialmedia.com/social*media*statistics*and*facts*of*2013*infographic/

Data to Grow Exponentially

Data Tsunami

The “Data Layer”

Source: John Battelle, Web 2.0 Conference, http://map.web2summit.com/#dl

How Companies

Are Using Big Data

Tuning into Consumers’ Digital Signals

Data Fueling M0Commerce

MobilePayment

MobileConcierge

Mobile Marketing

MobileRewards

Data Data

“Big Data” includes Cloud, Algorithms

Search

• Auto-complete

• Google Instant

• Proximity Search

• Image Search

• Personalized SERs

Augmented Reality Messages,

Ads, and Offers

Algorithms

LocationLocation

SocialSocial

HistoryHistory

Big Data ApplicationsShown below are illustrative use cases for Big Data, with an app/provider shown for each. While these

applications are not unique to mobile, they are especially important in the context of mobile, given small

screen sizes, users’ limited attention spans, dynamic and contextual usage, etc.

Category Description App/Provider

Audience Profiling

and Targeting

� Ingests large amounts of data, including unstructured, location*

based data (photos, place data, event data, digital, social, etc.)

� Applies ML to extracts patterns from the data

� Profiles discrete audience segments in terms of “dynamic context”

Mobile Advertising

Optimization� Employs automated, algorithmic solutions to adjust bids in real*

time based on the performance of prior impressions

Recommendation

Engines� Automatically uncovers unexpected buying patterns

� Learn from previous successful/unsuccessful recommendations

Content Optimization� Shows visitors optimal content, based on interests, viewing

behavior, time*of*day and many other variables

Audio and Image0

based Search� Compares, finds object in a database similar to a given sample

(e.g., clip from a song, TV program; image of a product; etc.)

Text Analytics/

Sentiment Analysis

� Analyzes unstructured text, infers meaning

� Used in wide range of applications, from sentiment analysis to

opinion mining, market research and others

†Acquired by Walmart Sept. 2011

Big Data Suppliers

Shown below are leading Big Data vendors, with a brief explanation of their role in the value chain.

Category Description Vendors

Data Sources� Companies that aggregate and supply data from social

media, demographics, geo*referenced databases and

many other sources

Cloud computing� Provide cloud storage and computing capabilities

� Offer the flexibility to dynamically scale as demand

expands/shrinks, pay on a variable basis

Databases� Provide databases specifically architected for big data,

MPP (massive parallel processing) and speed

High0performance

Computing� Provide computing platforms specifically developed to

process and analyze big data

Machine Learning/

Algorithms� Provide advanced analytics to solve large, complex

problems at scale and in (near) real*time

Visualization� Given the complexity of analyzing and interpreting Big

Data, visualization of results, especially for Business

Intelligence applications, is important

Strategies

Brands and Retailers

Are You Tapping into PEER?

†Securely, with full transparency

Source: Raising the Bar – How Leading Companies are Boosting Customer Loyalty with Mobile and PEER Strategies, Dr. Phil Hendrix, immr

Learn† &Adapt

Remove Frictions

Surprise/Delight

Reinforce

Are You Helping Customers Accomplish their Goals?

Minimizing

FrictionT

inty Co

kEnabling

Shoulds

Maximizing

Avoid,

minimize,

or eliminate

“Satisfice” “Maximize”

“Good for You”

(Resolutions)

Are You ManagingNumerator and Denominator?

Customer Benefits

Customer EffortLoyaltyLoyalty = ffff

Frictions

Shoulds

Are you Engaged? Or Merely Engaging?

I Like

am… Where I

What’s

Nearby

What’s

going On

What I

respond to

What I’ve

bought

I’ve been What

I need

I’m going

Source: How SoLoMo is Empowering Consumers, Transforming Shopping and Disrupting Advertising and Retailing, Dr. Phil Hendrix

KnowOE

Are You Tuned in to Consumers’ Digital Signals?

Are You Engaging by Consumers’ Rules?

Right0time

Relevant

Personalized

Rewarding

Source: Drive Revenue and Loyalty by Engaging Mobile and Social Consumers, Dr. Phil Hendrix, immr

Have You Defined YourRole(s) in Customers’ Lives?

Align Organization around Role(s)

Is Your House of Loyalty “Built to Last?”

Are You Doubled Down on Innovation?

Stage 4

Stage 3

Stage 2� Marketing

� Sales

� Finance

� Operations

� Field service

� HR

� Legal

� Support

� IT

Stage 1Connecting to:

� Internal data

� External data

� Platforms

� Partners“There’s an

app for that”

Keeping

Mobilizing

Processes

Mobilizing

Processes

Leapfrogging

Competitors

Leapfrogging

Competitors

Mobile

Innovation

Mobile

Innovation

Payoff

Development

Small bets

�� All in

Time and Investment

Remember…Paul Graham, YCombinator

Source: Mobilizing the Enterprise, Dr. Phil Hendrix, immr

“Returns are concentrated in a few big winners”

“Best ideas look initially like bad ideas…”

Are You Making the Right Strategic Bets?

Source: Which Mobile Shopping Apps Do Consumers Value Most, Dr. Phil Hendrix, forthcoming

Are You Hitting on All 8 Cylinders?

SecuritySecurity

Social

Currency

Social

Currency

AnticipatoryAnticipatory

Design(UI/UX/Emotion)

PersonalizationPersonalization OptimizationOptimization

Systems

Integration

Systems

Integration

User Value

Business Value

User Value

Business Value

Customer

Systems ofEngagement

Systems ofRecord

Moments of Truth

AnalyticsAnalytics

Engaging Connected Consumers –Recap of 10 Strategies

1. Tap into PEER

2. Help Customers Accomplish their Goals

3. Manage Numerator (Wants/Shoulds) and Denominator (Frictions)

4. Focus on Engaging Consumers, not just “Being Engaging”

5. Tune into Consumers’ Digital Signals

6. Define your Role(s) in Customers’ Lives (not just jobs)

7. Construct a House of Loyalty that’s “Built to Last”

8. Double Down on Innovation

9. Make the Right Strategic Bets

10. Hit on all 12 Cylinders (including Emotional Design, Anticipatory)

The Future of Marketing is Here

Hyper0local Audiences

Micro0locations

Filters

Persistent Location

Ambient Analytics

Micro Social Networks

Mashups

Yield Management

Curation

Source: Dr. Phil Hendrix, immr http://www.immr.org/mobile*remaking*marketing*201210.pdf

Appendix

Bio – Dr. Phil Hendrix

Dr. Phil Hendrix

Director, immr

www.immr.org

+1 (770) 61201488

phil.hendrix@immr.org

@phil_hendrix

Dr. Phil Hendrix is the founder and director of immr, a research and advisory firm focused on

market opportunities afforded by new technologies, and an analyst with GigaOm Pro. He

specializes in helping organizations evaluate and capitalize on opportunities that are new*to*

customers and new*to*market. Dr. Hendrix has extensive experience uncovering customer

needs, identifying triggers and hurdles to adoption, and developing strategies that unlock market

opportunities, both B2C and B2B.

As an analyst, Phil focuses on mobile innovation and the implications for companies across

industries. He is a regular contributor at leading industry conferences, including GigaOm’s

Mobilize, Structure:Data, Street Fight (hyperlocal), ad:tech, iMedia Summit, Social*Loco and

others. His current work focuses on mobile and its impact on consumer behavior, especially

shopping, M*commerce and mobile payment.

As a consultant and advisor, Phil has led significant engagements with startups and Fortune 100

clients in mobile, consumer electronics, and related categories, including financial services,

transportation, insurance and others. He works closely with senior management and project

teams on key issues, including market sizing, segmentation, positioning, and branding as well as

innovation, user experience, and customer retention. Over the course of his career, Phil has

helped clients conceive and successfully launch dozens of new products, services and

businesses.

Before founding immr, Phil was a partner with DiamondCluster (strategy and technology

consultancy), founder and head of IMS (Integrated Measurement Systems), and a principal with

Mercer Management Consulting (now Oliver Wyman). He has held faculty positions at Emory

University and the University of Michigan, where he taught courses in marketing, research, and

buyer behavior for MBAs and executives. While at Michigan Dr. Hendrix also held a joint

appointment as a research scientist in the Survey Research Center, Institute for Social

Research.

Additional information on immr perspectives and reports prepared by Dr. Hendrix is available at

immr and Slideshare, with additional information available at GigaOm Pro.

immr – Recent and Forthcoming Reports

� Innovating Innovation†

� Which Mobile Shopping Apps Do Consumers Value Most?†

� If Shopping is Broken, Can Mobile Fix it?

� Drive Revenue and Customer Loyalty by Engaging Mobile and Social Consumers

� Engaging Connected Consumers – Strategies for Brands, Retailers and Local

Businesses†

� Raising the Bar – Mobile and Customer Loyalty

� Social + Location + Mobile: SoLoMo Analytics and the Transformation of Shopping

� How Consumers Are Using Local Search

� Mobilizing the Enterprise with Custom Mobile Solutions: Pt. 1 and 2

� The Promise of Hyperlocal: Opportunities for Publishers and Developers

� Tuning into Consumers’ Digital Signals

� How SoLoMo is Empowering Consumers, Transforming

Shopping, and Disrupting Advertising and Retailing

� Location – the Epicenter of Mobile Innovation†Forthcoming

engaging connected consumers - strategies for brands and retailers

phil hendrix director

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